07.17.2018

Axioma Rolls Out New Europe Risk Model

Axioma, a provider of enterprise market risk analytics and portfolio construction solutions, has added a new Europe equity factor risk model (EU4) to its next-generation Equity Factor Risk Model suite. The new model provides institutions investing in Europe with region-specific insights for risk management, performance attribution, and portfolio construction.

“Amid market uncertainty and volatility in Europe, it’s even more important for investors with a European mandate to have a risk model that aligns with their investment process to accurately explain risk and performance,” said Alessandro Michelini, head of Portfolio Solutions at Axioma. “EU4 incorporates our latest research and methodologies and was build based on strong market demand. The additional customisation capabilities and access to Factor Libraries provide a complete and flexible solution to both portfolio managers and risk managers.”

The new equity factor risk model balances the investment community’s need for a robust standard solution with flexibility and customisation options via Axioma’s Risk Model Machine. This unique tool enables customising pre-packaged models to match portfolio managers’ specific investment processes and strategies.

It is part of Axioma’s complete suite of global equity portfolio construction and analytics solutions, which include:

  • Daily Fundamental models with comprehensive factor coverage for intuitive and detailed risk analysis and performance attribution
  • Daily Statistical models that can provide important additional risk and portfolio construction insights
  • Short and Medium Horizon Model variations to increase risk awareness in fast changing environments and align with a portfolio’s rebalancing frequency
  • The ability to customise important model features, such as the factors, horizon, and estimation universe and create a fully customised risk model using Axioma Risk Model Machine
  • Extensive factor libraries and the ability to incorporate your own libraries or those through third-party partners to identify sensitivities to additional factors, construct strategies titled to custom factor definitions and build fully customised risk models.

Axioma regularly reviews, updates and builds models to continue to provide investors with best-in-class solutions. As part of Axioma’s collaborative approach to innovation and product development, EU4 was designed and piloted in close cooperation with a group of Axioma’s clients across various firm types and investment strategies.

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